Question: 1
A followup review found that a significant internal control weakness had not been corrected. The chief audit executive (CAE) discussed this matter with senior management and was informed of management's willingness to accept the risk. The CAE should
Question: 2
Which of the following fraudulent acts is not designed primarily to benefit the organization?
Question: 3
Time series forecasting models can include which of the following components?
i. Trends.
ii. Seasonal variations.
iii. Cycles.
Question: 4
As an audit technique, observation is
i. Limited because individuals may react differently when being observed.
ii. More persuasive for the completeness assertion than it is for the existence assertion when testing financial statement balances.
iii. Effective in providing evidence on how the company's processes differ from those specified by written policies.
Question: 5
An internal auditor has been asked to provide a report to an external party for which internal audit services were provided. Which of the following should be considered prior to complying with the request?
i. Need for a written agreement concerning the information to be reported.
ii. Limitations on the distribution or sharing of the information provided.
iii. Nature of the report, including conclusions, recommendations, and status of findings.
IV. Appropriateness of revising or editing the report to make it more suitable for dissemination outside the organization.
